Clothing and Textiles

HOWWE FUND BUSINESSES IN THE
CLOTHING AND TEXTILES SECTOR

The IDC’s strategic business unit (SBU) for clothing and textiles offers support to a variety of enterprises across the sector, ranging from creators of home décor to leather goods producers to manufacturers of natural or synthetic fabrics. The aim is to build a locally and regionally competitive industry through strategic partnerships that promote entrepreneurship and social and industrial development.

 

The unit also manages a Clothing, Textiles, Footwear and Leather Competitiveness Improvement Scheme. The unit works closely with the Clothing Textiles Competitiveness Program which is a grant scheme managed on behalf of the dti.

 

Objectives of the SBU

 

  • To support the development of a viable model for a competitive, sustainable local clothing and textiles industry.
  • To assist existing enterprises to expand and to assist the establishment of new enterprises through the provision of funding in order to create and/or preserve jobs and drive social and economic growth.

 

Doing business with the unit

 

Our focus is on identifying and developing strategic projects involved in one or more of the following areas:

WHAT WE FUND

Clothing manufacturing

Leather tanning; and leather product manufacturing

Spinning of yarns, knitting and weaving of products

Dyeing, printing and finishing of fabrics

Natural fibre production, including wool and mohair beneficiation

Footwear manufacturing

Non-woven textile production

Household textile production

Synthetic fibre production

WHO SHOULD APPLY FOR FUNDING?

Existing manufacturers who wish to expand or modernise their production capacity; manufacturers in distress due to global economic trading conditions; and entrepreneurs looking to start up small to medium manufacturing facilities.

 

We do not refinance assets.

 

Every business proposal is considered on its own merits, but preference is given to:

 

  • Financing fixed assets and the fixed portion of growth in working capital requirements;
  • Supporting ventures/projects that have a significant socio-economic impact in terms of job creation, value addition, empowerment, rural development, and/or township development;
  • Supplying distress funding for troubled companies that have a clear turnaround plan.

FUNDING CRITERIA

Our minimum investment requirements are:

 

  • Security, of a type related to your business’s specific circumstances;
  • Compliance with international environmental standards; and
  • Relevant bargaining council compliance.

 

In addition, shareholders/owners are expected to make a material contribution to the project — generally 35% of total assets for going concerns and 45% – 50% for start-ups, depending on the industry norms and risks involved. We prefer our exposure not to exceed that of the owners of the business.

 

However, the contribution for start-ups with a material developmental and job creation impact may be lowered, in which case the IDC may be prepared to extend finance greater than the owners’ contribution.

HOW TO

APPLY FOR FUNDING

Application for funding should be in writing and should include an executive summary and a business plan.

STEP 1

BUSINESS PLAN

Draw up a well-researched business plan, stating a compelling case for funding

STEP 2

REGISTER ONLINE

*Applications can also be submitted at the IDC office

STEP 3

UPLOAD APPLICATION

Upload your application with the relevant documents, certificates and business plan

STEP 4

PROCESS APPLICATION

IDC will confirm that it has received your application. While processing we may ask you to supply extra information or documentation

STEP 5

APPROVAL STATUS

IDC will give you feedback on the outcome of your application, in writing. If your application is successful, due diligence will be conducted on your business.

STEP 6

LOAN CONTRACT

Once the IDC has satisfied itself of your bona fides, you will be asked to sign a loan contract

OTHER INDUSTRY SECTORS

WE FUND

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